It's interest to see Bellamy's liftoff on the asx today, though...

It's interest to see Bellamy's liftoff on the asx today, though I think this could see a lot of retail investors getting burnt. With a PE of 58.95 it is a steep uphill battle to reach value and today's dam busting rise makes me think there is good reason to think twice before buying into BAL at this point.

I think it's a great company with excellent long term potential but I don't think it's going to be able to accelerate fast enough to match the incredibly high PE ratio. I think Nestle will be eyeing off this market and looking to adapt it's milk powder. Bellamy's looks to have received too much investment too quickly. While purchasing this stock a month ago was a great purchase, buying at today's price may be a sucker deal. I also suspect that it currently cannot meet supply and demand.

The Age newspaper ran a story about Chinese tourists running Bellamy's milk powder out of supply at woolies weeks back and I'm sure a lot of retail investors have jumped on the stock. I suspect now we are going to see a pullback. I also think this is becoming a shorter target stock.